Quote:
GM said in a news release that it will ask the government to take 50 percent of its common stock in exchange for canceling half the government loans to the company as of June 1.
GM said the bond exchange aims to wipe away a large majority of the company’s $27 billion in unsecured debt. The company estimates that after the exchange, bondholders would own 10 percent of the company.
In addition, GM is offering the United Auto Workers stock for at least 50 percent of the $20 billion the company must pay into a union run trust that will take over retiree health care expenses starting next year.
All the stock offerings mean that current common stockholders would own only 1 percent of the company under the deals, the press release says.
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Ownership looks like the following...
US Fed government - 50%
Bondholders - 10%
UAW - 39%
Current Ownership - 1%
Wow..................